Romanian Govt. prepares new positive budget amendment

Romania’s Government is preparing a new budget amendment that will be finalized this month. The amendment is positive, which means that some ministries will get more money. The budget deficit will remain at 2.96% of the GDP as previously set by the Government. The Finance Ministry estimates that it will have more money to spend due to the higher economic growth than previously estimated. According to the National Prognosis Commission’s most recent forecast, Romania’s economy will grow by 6.1% this year. The Government took into account a 5.2% economic growth at the beginning of this year, when it drafted the first budget for 2017, and 5.6% when it made the first positive amendment, in September. The budget revenues are expected to be RON 280 million (EUR 60 million) higher than initially estimated and the expenses will go up by RON 504 million (EUR 109 million). The local authorities, the Labor Ministry and Interior Ministry will get the highest extra amounts to finance wage and pension increases. More money for salaries will also be granted to the Health Ministry and Justice Ministry. The Transport Ministry will get more money to co-finance EU-funded infrastructure projects. Meanwhile, the Business Environment Ministry will lose some RON 78.5 million, the Finance Ministry will give up RON 52 million, and the Regional Development Ministry will lose RON 44 million. The Culture Ministry and Environment Ministry will also have to give up some of the money initially allotted to them. These ministries have failed to spend the money allotted to them this year. editor@romania-insider.com